The Multi-State Co-operative Societies Act, 2002
Administered Ministry: Ministry of Cooperation
Section
Section 49 Powers and functions of board.
(1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing powers, such powers shall include the power--
(a) to admit members;
(b) to interpret the organisational objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint and remove a Chief Executive and such other employees of the society as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-State cooperative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against such employees;
(f) to place the annual report, annual financial statements, annual plan and budget for the approval of the general body;
(g) to consider audit and compliance report and place the same before the general body;
(h) to acquire or dispose of immovable property;
(i) to review membership in other co-operatives;
(j) to approve annual and supplementary budget;
(k) to raise funds;
(l) to sanction loans to the members; and
(m) to take such other measures or to do such other acts as may be prescribed or required under this Act or the bye-laws or as may be delegated by the general body.
(2) Without prejudice to the generality of the foregoing powers, such powers shall include the power--
(a) to admit members;
(b) to interpret the organisational objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint and remove a Chief Executive and such other employees of the society as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-State cooperative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against such employees;
(f) to place the annual report, annual financial statements, annual plan and budget for the approval of the general body;
(g) to consider audit and compliance report and place the same before the general body;
(h) to acquire or dispose of immovable property;
(i) to review membership in other co-operatives;
(j) to approve annual and supplementary budget;
(k) to raise funds;
(l) to sanction loans to the members; and
(m) to take such other measures or to do such other acts as may be prescribed or required under this Act or the bye-laws or as may be delegated by the general body.
Section 50 Meeting of board.
(1) The Chief Executive shall convene the meetings of the board at the instance of the chairperson or president of the multi-State co-operative society.
(2) The total number of meetings of the board in a year and the venue of meetings as may be specified in the bye-laws:
Provided that the board shall meet at least once in every quarter:
Provided further that not more than two persons may be invited by the board in its meetings.
(3) The Chairperson, or if for any reason, he is unable to attend a meeting of the board, any other member of the board chosen by the members of the board present from amongst themselves at the meeting, shall preside at the meeting.
(2) The total number of meetings of the board in a year and the venue of meetings as may be specified in the bye-laws:
Provided that the board shall meet at least once in every quarter:
Provided further that not more than two persons may be invited by the board in its meetings.
(3) The Chairperson, or if for any reason, he is unable to attend a meeting of the board, any other member of the board chosen by the members of the board present from amongst themselves at the meeting, shall preside at the meeting.
Section 51 Chief Executive.
(1) There shall be a Chief Executive, by whatever designation called, of every multi-State co-operative society to be appointed by the board and he shall be a full-time employee of such multi-State co-operative society.
(2) The Chief Executive shall be a member of the board and of the Executive Committee and such other committees or subcommittees as may be constituted under sub-section (1) of section 53.
(3) Where the Central Government or the State Government holds fifty-one per cent. or more of the equity share capital or of total shares of the multi-State co-operative society, the salary and allowances payable to and other terms and conditions of service including pension, gratuity and other retirement benefits of the Chief Executive shall be such as may be prescribed.
(2) The Chief Executive shall be a member of the board and of the Executive Committee and such other committees or subcommittees as may be constituted under sub-section (1) of section 53.
(3) Where the Central Government or the State Government holds fifty-one per cent. or more of the equity share capital or of total shares of the multi-State co-operative society, the salary and allowances payable to and other terms and conditions of service including pension, gratuity and other retirement benefits of the Chief Executive shall be such as may be prescribed.
Section 52 Powers and functions of Chief Executive.
The Chief Executive shall under the general superintendence, direction and control of the board, exercise the powers and discharge the functions specified below, namely:--
(a) day-to-day management of the business of the multi-State co-operative society;
(b) operating the account of the multi-State co-operative society and be responsible for making arrangements for safe custody of cash;
(c) signing on the documents for and on behalf of the multi-State co-operative society;
(d) making arrangements for the proper maintenance of various books and records of the multiState co-operative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-laws;
(e) convening meetings of the general body of the multi-State co-operative society, the board and the Executive Committee and other committees or sub-committees constituted under sub-section (1) of section 53 and maintaining proper records for such meetings;
(f) making appointments to the posts in the multi-State co-operative society in accordance with the bye-laws;
(g) assisting the board in the formulation of policies, objectives and planning;
(h) furnishing to the board periodical information necessary for appraising the operations and functions of the multi-State co-operative society;
(i) appoint the person to sue or be sued on behalf of the multi-State co-operative society;
(j) present the draft annual report and financial statement for the approval of the board within thirty days of closure of the financial year;
(k) performing such other duties, and exercising such other powers, as may be specified in the bye-laws of the multi-State co-operative society.
(a) day-to-day management of the business of the multi-State co-operative society;
(b) operating the account of the multi-State co-operative society and be responsible for making arrangements for safe custody of cash;
(c) signing on the documents for and on behalf of the multi-State co-operative society;
(d) making arrangements for the proper maintenance of various books and records of the multiState co-operative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-laws;
(e) convening meetings of the general body of the multi-State co-operative society, the board and the Executive Committee and other committees or sub-committees constituted under sub-section (1) of section 53 and maintaining proper records for such meetings;
(f) making appointments to the posts in the multi-State co-operative society in accordance with the bye-laws;
(g) assisting the board in the formulation of policies, objectives and planning;
(h) furnishing to the board periodical information necessary for appraising the operations and functions of the multi-State co-operative society;
(i) appoint the person to sue or be sued on behalf of the multi-State co-operative society;
(j) present the draft annual report and financial statement for the approval of the board within thirty days of closure of the financial year;
(k) performing such other duties, and exercising such other powers, as may be specified in the bye-laws of the multi-State co-operative society.
Section 53 Committees of board.
(1) The board may, subject to such conditions as may be prescribed, constitute an Executive Committee and other committees or subcommittees as may be considered necessary:
Provided that other committees or sub-committees, other than the Executive Committee shall not exceed three.
(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State cooperative society.
Provided that other committees or sub-committees, other than the Executive Committee shall not exceed three.
(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State cooperative society.
Section 54 Securing possession of records, etc.
(1) If--
(a) the records, including registers and books of account of a multi-State co-operative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated; or
(b) the board of a multi-State co-operative society is reconstituted at a general meeting of the society; or
(c) a multi-State co-operative society is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge,
the Chief Executive may apply to the magistrate within whose jurisdiction the multi-State co-operative society functions for securing the records and property of the society.
(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new board or the liquidator, as the case may be.
(3) Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974).
(a) the records, including registers and books of account of a multi-State co-operative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated; or
(b) the board of a multi-State co-operative society is reconstituted at a general meeting of the society; or
(c) a multi-State co-operative society is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge,
the Chief Executive may apply to the magistrate within whose jurisdiction the multi-State co-operative society functions for securing the records and property of the society.
(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new board or the liquidator, as the case may be.
(3) Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974).
Section 55 Charge and set-off in respect of share or contribution or interest of members.
A multi-State co-operative society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society and may set-off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
Section 56 Share or contribution or interest not liable to attachment.
(1) Subject to the provisions of section 55, the share or contribution or interest of a member or past or deceased member in the capital of a multi-State co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or contribution or interest.
(2) The reserve fund, or the bad debt reserves, or the provident fund of the employees, of a multiState co-operative society invested by such society in accordance with the provision of this Act and the bye-laws shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.
(2) The reserve fund, or the bad debt reserves, or the provident fund of the employees, of a multiState co-operative society invested by such society in accordance with the provision of this Act and the bye-laws shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.
Section 57 Register of members.
Any register or list of members or shares kept by any multi-State cooperative society shall be prima facie evidence of any of the following particulars entered therein, namely:--
(a) the date on which any person entered in such register or list became a member; or
(b) the date on which any such person ceased to be a member.
(a) the date on which any person entered in such register or list became a member; or
(b) the date on which any such person ceased to be a member.
Section 58 Admissibility of copy of entry as evidence.
(1) A copy of any entry in a book of a multi-State co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent, as the original entry itself if admissible.
(2) No officer of a multi-State co-operative society and no officer in whose office the books of a multi-State co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made for a special cause.
(2) No officer of a multi-State co-operative society and no officer in whose office the books of a multi-State co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made for a special cause.
Section 59 Exemption from compulsory registration of instruments.
Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908) shall apply to--
(a) any instrument relating to shares in a multi-State co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) an endorsement upon transfer of any debenture issued by any such society.
(a) any instrument relating to shares in a multi-State co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) an endorsement upon transfer of any debenture issued by any such society.
Section 60 Deduction from salary to meet multi-State co-operative society’s claim in certain cases.
(1) Notwithstanding anything contained in any law for the time being in force, a member of a multi-State cooperative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand the member owes to the society.
(2) On the execution of such agreement, the employer disbursing the salary or wages of the members shall, if so required by the multi-State co-operative society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936 (4 of 1936), and such payment shall be valid discharge of the employer for his liability to pay the amount deducted.
(3) If after the receipt of a requisition made under sub-section (2), the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-State co-operative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears.
(2) On the execution of such agreement, the employer disbursing the salary or wages of the members shall, if so required by the multi-State co-operative society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936 (4 of 1936), and such payment shall be valid discharge of the employer for his liability to pay the amount deducted.
(3) If after the receipt of a requisition made under sub-section (2), the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-State co-operative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears.
Section 61 Government aid to multi-State co-operative societies.
Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government, on receipt of request from a multi-State co-operative society and with a view to promoting co-operative movement, may,--
(a) subscribe to the share capital of a multi-State co-operative society;
(b) give loans or make advances to a multi-State co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a multiState co-operative society;
(d) guarantee the repayment of share capital of a multi-State co-operative society and dividends thereon at such rates as may be specified by the Central Government or the State Government;
(e) guarantee the repayment of principal and payment of interest on loans and advances to a multi-State co-operative society;
(f) give financial assistance in any other form, including subsidies, to any multi-State co-operative society; and
(g) provide aid to any other multi-State co-operative society on such terms and conditions as may be prescribed.
(a) subscribe to the share capital of a multi-State co-operative society;
(b) give loans or make advances to a multi-State co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a multiState co-operative society;
(d) guarantee the repayment of share capital of a multi-State co-operative society and dividends thereon at such rates as may be specified by the Central Government or the State Government;
(e) guarantee the repayment of principal and payment of interest on loans and advances to a multi-State co-operative society;
(f) give financial assistance in any other form, including subsidies, to any multi-State co-operative society; and
(g) provide aid to any other multi-State co-operative society on such terms and conditions as may be prescribed.
Section 62 Funds not to be divided by way of profit.
(1) No part of the funds, other than net profits, of a multi-State co-operative society shall be divided by way of bonus or dividend or otherwise distributed among its members.
(2) The net profits of a multi-State co-operative society referred to in sub-section (1) in respect of a society earning profits shall be calculated by deducting from the gross profit for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the time being in force, and equalisation fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961 (43 of 1961), development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalisation fund, share capital redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profit:
Provided that such society may add to the net profits for the year interest accrued in the preceding years, but actually recovered during the year:
Provided further that in the case of such multi-State co-operative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws.
(2) The net profits of a multi-State co-operative society referred to in sub-section (1) in respect of a society earning profits shall be calculated by deducting from the gross profit for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the time being in force, and equalisation fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961 (43 of 1961), development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalisation fund, share capital redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profit:
Provided that such society may add to the net profits for the year interest accrued in the preceding years, but actually recovered during the year:
Provided further that in the case of such multi-State co-operative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws.
Section 63 Disposal of net profits.
(1) A multi-State co-operative society shall, out of its net profits in any year,--
(a) transfer an amount not less than twenty-five per cent. to the reserve fund;
(b) credit one per cent. to co-operative education fund maintained, by the National Co-operative Union of India Limited, New Delhi, in the manner as may be prescribed;
(c) transfer an amount not less than ten per cent. to a reserve fund for meeting unforeseen losses.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:--
(a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;
(c) donation of amounts not exceeding five per cent. of the net profits for any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890);
(d) payment of ex gratia amount to employees of the multi-State co-operative society to the extent and in the manner specified in the bye-laws.
(a) transfer an amount not less than twenty-five per cent. to the reserve fund;
(b) credit one per cent. to co-operative education fund maintained, by the National Co-operative Union of India Limited, New Delhi, in the manner as may be prescribed;
(c) transfer an amount not less than ten per cent. to a reserve fund for meeting unforeseen losses.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:--
(a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;
(c) donation of amounts not exceeding five per cent. of the net profits for any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890);
(d) payment of ex gratia amount to employees of the multi-State co-operative society to the extent and in the manner specified in the bye-laws.
Section 63A Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund.
1[63A. Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund. -- (1) The Central Government shall establish a Fund, to be called the Co-operative Rehabilitation, Reconstruction and Development Fund for revival of sick multi-State co-operative societies as referred to in section 63B and for development purposes in such manner as may be determined by it and there shall be credited to such Fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one per cent. of the net profits of such multi-State cooperative society, whichever is less.
(2) The Central Government shall, by notification, constitute a Committee, consisting of such members as it may deem fit, to administer the Fund, and maintain separate accounts and other relevant records in relation to the Fund in such form as may be specified by the Central Government in consultation with the Comptroller and Auditor-General of India.
(3) The Committee shall spend the money out of the Fund for carrying out the objects for which such Fund has been established.]
(2) The Central Government shall, by notification, constitute a Committee, consisting of such members as it may deem fit, to administer the Fund, and maintain separate accounts and other relevant records in relation to the Fund in such form as may be specified by the Central Government in consultation with the Comptroller and Auditor-General of India.
(3) The Committee shall spend the money out of the Fund for carrying out the objects for which such Fund has been established.]
1. Ins. by s. 24, ibid. (w.e.f. 3-8-2023).
Section 63B Rehabilitation and reconstruction of sick societies.
1[63B. Rehabilitation and reconstruction of sick societies.-- (1) If, at any time, the Central Registrar, is of the opinion that a multi-State co-operative society has become sick, he may, by an order, declare such society as sick co-operative society.
(2) Where a multi-State co-operative society is declared as a sick co-operative society under sub-section (1), the Central Government or any person or agency authorised by it, may prepare a scheme for rehabilitation and reconstruction of the society and hand it over to the society for approval of the general body.
(3) The Central Government may, on the recommendation of the general body and to give effect to the scheme for rehabilitation and reconstruction referred to in sub-section (2), re-organise the board of such society with such persons, having experience in the field of co-operation, management, finance, accountancy and any other area relating to such societies as may be recommended by the general body:
Provided that in respect of a sick multi-State co-operative bank, any scheme for rehabilitation or reconstruction shall be done with the prior approval of the Reserve Bank.
Explanation.-- For the purposes of this section, the expression "sick co-operative society" means a multi-State co-operative society being a society registered under the provisions of this Act which has at the end of any financial year accumulated losses equal to or exceeding total of its paid-up capital, free reserves and surpluses and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.]
(2) Where a multi-State co-operative society is declared as a sick co-operative society under sub-section (1), the Central Government or any person or agency authorised by it, may prepare a scheme for rehabilitation and reconstruction of the society and hand it over to the society for approval of the general body.
(3) The Central Government may, on the recommendation of the general body and to give effect to the scheme for rehabilitation and reconstruction referred to in sub-section (2), re-organise the board of such society with such persons, having experience in the field of co-operation, management, finance, accountancy and any other area relating to such societies as may be recommended by the general body:
Provided that in respect of a sick multi-State co-operative bank, any scheme for rehabilitation or reconstruction shall be done with the prior approval of the Reserve Bank.
Explanation.-- For the purposes of this section, the expression "sick co-operative society" means a multi-State co-operative society being a society registered under the provisions of this Act which has at the end of any financial year accumulated losses equal to or exceeding total of its paid-up capital, free reserves and surpluses and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year.]
1. Ins. by s. 24, ibid. (w.e.f. 3-8-2023).
Section 63C Financial assistance to multi-State co-operative societies for development.
1[63C. Financial assistance to multi-State co-operative societies for development.--(1) The Central Government may, on an application made by a multi-State co-operative society which has contributed to the Fund for continuous five preceding financial years, grant such financial assistance as it may consider appropriate to the society out of the Fund for infrastructural requirement:
Provided that at least fifty per cent. of the total requirement shall be borne by the multi-State co-operative society and the financial assistance from the Fund shall not exceed more than the fifty per cent. of such requirement.
(2) The Committee constituted under sub-section (2) of section 63A shall examine and recommend to the Central Government for providing the financial assistance to the multi-State co-operative society to such extent and on such terms and conditions as it may consider necessary.]
Provided that at least fifty per cent. of the total requirement shall be borne by the multi-State co-operative society and the financial assistance from the Fund shall not exceed more than the fifty per cent. of such requirement.
(2) The Committee constituted under sub-section (2) of section 63A shall examine and recommend to the Central Government for providing the financial assistance to the multi-State co-operative society to such extent and on such terms and conditions as it may consider necessary.]
1. Ins. by s. 24, ibid. (w.e.f. 3-8-2023).
Section 64 Investment of funds.
A multi-State co-operative society may invest or deposit its funds--
(a) in a co-operative bank, state co-operative bank, co-operative land development bank or central co-operative bank; or
(b) in any of the securities specified in section 20 of the Indian Trust Act, 1882 (2 of 1882); or
(c) in the shares or securities of any other multi-State co-operative society or any co-operative society; or
(d) in the shares, securities or assets of a subsidiary institution or any other institution; or
(e) with any other bank; or
(f) in such other mode as may be provided in the bye-laws.
Explanation.--For the purposes of clause (e), "bank" means any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), and includes--
(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(ii) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).
(a) in a co-operative bank, state co-operative bank, co-operative land development bank or central co-operative bank; or
(b) in any of the securities specified in section 20 of the Indian Trust Act, 1882 (2 of 1882); or
(c) in the shares or securities of any other multi-State co-operative society or any co-operative society; or
(d) in the shares, securities or assets of a subsidiary institution or any other institution; or
(e) with any other bank; or
(f) in such other mode as may be provided in the bye-laws.
Explanation.--For the purposes of clause (e), "bank" means any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), and includes--
(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(ii) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).
Section 65 Restriction on contribution.
No multi-State co-operative society shall make a contribution, either in money or in kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party.